Get a FREE quote on a fixed vs. adjustable rate & save thousands of dollars per year.
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate and you'll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great.
We're here to make the home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our FREE Compare Fixed vs Adjustable Rates.
We'll help you clearly see differences between loan programs, allowing you to choose the right one for you whether you're a first-time home buyer or a seasoned investor.
A fixed-rate mortgage is a type of home loan where the interest rate remains constant throughout the entire term of the loan. This means that the monthly payments for principal and interest stay the same, providing predictable and stable payments over the life of the loan, typically 15, 20, or 30 years. This stability makes budgeting easier for homeowners, as they always know what to expect in their mortgage payments.
In contrast, an adjustable-rate mortgage (ARM) features an interest rate that can change periodically, usually in relation to an index. After an initial fixed-rate period, the interest rate adjusts at predetermined intervals (such as annually), which can cause monthly payments to fluctuate. ARMs often start with lower initial rates compared to fixed-rate mortgages, which can be attractive to some buyers, but they carry the risk of higher payments in the future if interest rates rise.
Here's how our home loan process works:
As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below:
